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Alain Delsupexhe CEO Eolfi, Veolia Environnement 21 st April, 2010

EWEC 2010 - Project Finance Session Debt for onshore wind projects : the light at the end of the tunnel?. Alain Delsupexhe CEO Eolfi, Veolia Environnement 21 st April, 2010. Eolfi at a glance. Eolfi is the wind and solar subsidiary of Veolia

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Alain Delsupexhe CEO Eolfi, Veolia Environnement 21 st April, 2010

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  1. EWEC 2010 - Project Finance SessionDebt for onshorewindprojects: the light at the end of the tunnel? Alain Delsupexhe CEO Eolfi, Veolia Environnement 21st April, 2010

  2. Eolfi at a glance • Eolfi is the wind and solar subsidiary of Veolia • Global team of 122 people on two platforms : US & Europe (France, Greece, Poland) • An integrated renewable project developer and operator active along 4 business lines: Asset Management €250 million of equity under management Supervising over 500 MW in construction or operation Operating Services Development 6.7GW gross wind and solar portfolio in 4 countries Power Generation 410MW of operating capacity on Eolfi balance sheet by 2015

  3. Eolfi: facts and figures €580 million of new debt financing in 2010 • Equity under management: • €250 million raised as of 2010 • Project Finance: • €350 million debt raised as of 2009 • €580 million to be raised in 2010

  4. Banks show signs of recovery 09/2008: Lehman collapse 2010 • Peak in pricing at • 300 bps • Reduced tenors • Lower gearing • End of syndication • Longer closings • Syndication market • poised to reopen • Appetite for deals • Margins <200 bps • Tenors beyond PPA 2009 : saved by multi-laterals and state-backedbanks • EIB, EBRD, ECAs or • KfW for better terms • Mini-perms • structures

  5. Recipes to manage bankers’ loyalty • Banks remain selective, prompting borrowers to improve attractiveness Ought to be a Tier 1 sponsor • Banks focus on deep-pocket sponsors, relationship clients • and track-record Mitigate projectrisks • Prefer EPC contracts, portfolio effects and quality off-takers Regulatedmarkets • Feed-in tariffs and subsidies are preferred Commit to a long-term involvement • Long-term commitment and technical involvement of the • sponsors enhance bankability Offer cross-selling revenues - M&A, advisory, hedging opportunities do increase appeal

  6. Towards alternative sources of financing ? Multi-Laterals (EIB, EBRD, IFC) ECAs & State-backedbanks • Debt Capital Markets • Towards bonds issuance? Funding/guarantees for permittedprojects Funding/guarantees for permittedprojects Bond refinancingafter a few years of operation • Commercial • Banks : • advising • coordinating • structuring • Alternative sources of funding alleviate banks equity constraints • Commercial banks will have a major role for origination and coordination

  7. Conclusion 1 Banks come back! And margins go down! 2 But bankersremainselective on quality due to their balance sheet restrictions 3 Prompting borrowers to seek alternative sources of financing.

  8. Eolfi is the wind and solar subsidiary of Veolia Environnement Eolfi focuses on all aspects of solar and wind power production, from acquisition and financing, to development, construction and electricity generation. We are a fully integrated operator of solar and wind parks with projects in France, Greece, Poland and the US. Eolfi 25, Place de la Madeleine 75008 Paris Tél : +33 1 40 07 95 00 Fax : +33 1 40 07 95 06 www.eolfi.com – contact@eolfi.com EOLFI – 25, place de la Madeleine - 75008 Paris (France) - tel + 33 1 40 07 95 00 - contact@eolfi.com

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